The principal shift in emphasis anticipated has to do with our work in the general area of memory where we plan to move toward more balance between deeper analyses of problems of organization in memory per se and consideration of the role of memory in various types of performance. This latter shift was begun during the current year in connection with work on probability judgments and we plan a major effort during the coming year with regard to the role of memory in human multiple choice behavior. This work will include further analyses of already completed but unpublished experiments on choice behavior in both children and adults together with new studies suggested by our theoretical analysis. The anticipated outcome is a monographic publication in this area. In other work on memory we expect to continue the development and extension of the associative coding model for organization with special emphasis on the basis of chunking and grouping in memory and on the way in which higher order units develop, especially in visual communication. Further, we plan a major effort to revise and update the model for short term memory for serial order originally presented in 1972 in the light of many new developments. Bibliographic references: Estes, W.K. The locus of inferential and perceptual processes in letter identification. Journal of Experimental Psychology: General, 1975, 104, 122-145. Estes, W.K. Learning theory and intelligence. American Psychologist, 1974, 29, 740- 749.